Escalent recognizes six retail electric providers (REPs) as 2024 Most Trusted Brands among Texas REPs for their commitment to outstanding customer service and helping customers save

LIVONIA, Mich., Nov. 19, 2024 (GLOBE NEWSWIRE) -- More than half of Texas retail electric provider customers have indicated they plan to shop for a new REP in the next year. Savings is the key motivator, overriding all other shopping triggers. These and other findings are from the Cogent Syndicated Texas REP Trusted Brand study from Escalent, a top data analytics and advisory firm with extensive energy, utility and brand experience.

The study finds that, overall, Texas REP Brand Trust has seen a directional decline of seven points from 2023 to 701 this year, hitting a record low since the study launched in 2016. Texas REPs score near the bottom of service providers, posting Brand Trust levels similar to those of phone and cable TV companies. By contrast, companies such as banks, Amazon and wireless carriers continue to post significantly higher Brand Trust scores.

Pricing concerns are a common theme throughout different aspects of the REP experience, affecting customer perceptions of everything from billing and service to overall trust, and are the number one motivation for customers to begin searching for a new provider. Among customers who are planning to look for a new REP within the next year, their average monthly bill amount is $303; however, the average bill is much lower for customers who are not planning to switch providers ($212).

“While inflation has slowed, higher bills are still pushing customers to be on the lookout for savings opportunities,” said Suzanne Haggerty, director of syndicated research with the Energy team at Escalent. “In the Texas retail market, this has resulted in customers becoming accustomed to constantly pursuing the next best sign-up incentive, which, of course, results in more customer churn than retailers would like.”

Companies that offer ongoing value and a satisfying customer experience can slow this churn. While 54% of customers cite low rates as the top REP brand attribute, 36% cite “provides great service” as the most important quality.

Furthermore, brand attribute scores are significantly higher among customers who do not plan to shop for a new REP, with ratings for “care about customer needs” and “have a strong local reputation” almost a full point higher (on a 0-to-10 scale) compared with those who do plan to shop.

With customers contending with significantly higher bills, REPs have an opportunity to promote cost-saving measures and products. Among customers who currently use consumption management offerings such as communication that analyzes energy use, online energy management tools or in-home/online energy audits, Brand Trust is 27 points higher than average. In addition, with many customers citing pricing as an incentive to shop for a new REP, encouraging use of these types of offerings can help improve customer loyalty and retention.

“Price is important, but value is a more layered concept,” added Haggerty. “Texas REPs that focus on the customer, communicate more effectively and make themselves easier to do business with see higher Brand Trust and higher customer retention rates.”

Outreach efforts can have a notable impact. Communication analyzing energy use and online energy management tools experience the greatest increases in customer interest compared with 2023, indicating that customers are not only looking for offerings that help them lower consumption, but also those that are easily accessible and straightforward to use.

While the percentage of customers who recall receiving communication from their retailer remains stable at 57%, customer perception of the effectiveness of the communication declines over the last year. However, Brand Trust scoring among customers who recall REP communication is significantly higher than among those who do not recall any messaging. Additionally, higher perceptions of the effectiveness of the communication correlates with an even greater lift to Brand Trust.

Although overall Texas REP Brand Trust scores have declined, six REPs are leading the Brand Trust Index this year. Escalent is pleased to name these six retail electric providers as our 2024 Most Trusted Brands among Texas REPs (in bold). Also included are Brand Trust scores for larger REP brands.

About Texas REP Trusted Brand

Cogent Syndicated measures Customer Engagement and Brand Trust among customers of Texas retail electric providers by surveying 3,357 customers across providers based upon data-driven models. The study measures key performance indicators to provide management perspectives on how to improve REP brand positioning, sales and promotion, customer trust, effective messaging, product sales, customer experiences, service quality, customer acquisition and loyalty. Escalent’s Brand Trust Index comprises nine factors: community support, customer focus, communications effectiveness, environmental dedication, local reputation, reliable quality, competitive rates, enhanced offerings, and billing and customer service. The study collects a demographically representative sample across all Texas service territories open for retail electric competition. Escalent will supply the exact wording of any survey question upon request.

For more information on the full report, click here.

Contact
Stephanie Salvadero, 734.838.5192
stephanie.salvadero@escalent.co 

Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9a60a461-0c2d-4b8b-9c3f-02d697356764
https://www.globenewswire.com/NewsRoom/AttachmentNg/526a9c80-1cf5-430b-9713-6c0e22624f09

Suzanne Haggerty

Director, Syndicated Research

2024 Most Trusted Brands among Texas REPs

Escalent recognizes six retail electric providers (REPs) as 2024 Most Trusted Brands among Texas REPs

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